Broadcom to purchase AMD's digital TV operations

August 26, 2008 - US semiconductor firm Broadcom has entered into a definitive agreement with Advanced Micro Devices (AMD) to acquire the latter's digital TV (DTV) business for approximately US$192.8mn in cash, with the intention of expanding its product line and Tier 1 customer base.

AMD's digital TV product line includes all Xilleon integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater 300 DTV processor and a line of panel processors.  Following the acquisition, Broadcom anticipates a more compete product line that covers all segments of the digital TV market from low-end value and mid-range quality to high-end interactive platforms and panel processors.

"The acquisition of AMD's DTV business, which will become the core of Broadcom's DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment," said Daniel Marotta, Senior Vice President & General Manager of Broadcom's Broadband Communications Group. "We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers."

The transaction is expected to be concluded in the fourth quarter of this year.